Sterling inched above five-month lows on Monday as British Prime Minister Theresa May makes a last-ditch attempt to get a Brexit deal through parliament before she leaves office, though scepticism from the opposition Labour Party capped gains.
After failing three times to get parliament’s approval for her EU divorce deal, May said she will present a “new, bold offer” to lawmakers with “an improved package of measures” in a final attempt to secure a Brexit deal.
The opposition leader said he would not support May’s new attempt to push through her Brexit bill if it was fundamentally the same as the bill that had been defeated three times before.The inability of the British parliament to compromise on Brexit has led the market to take a much more binary view on the outcome; divided between a so-called hard Brexit and a second referendum.
Adding to this feeling is a poll that showed Boris Johnson, a prominent leader of the Brexit campaign, as top choice among members of Britain’s ruling Conservative Party to replace May as Prime Minister.
The dollar was little changed on Monday morning but maintained last week’s gains as investors held off on big moves while awaiting developments in U.S-China trade negotiations and for insights into the Federal Reserve’s thinking on their interest-rate policy.
Federal Reserve Chair Jerome Powell said on Monday that it was premature to make a judgment about the impact trade and tariff issues could have on monetary policy.
On Wednesday, the Federal Open Market Committee will release minutes from its last meeting, which investors hope will show what prompted the policymakers to strike a broadly neutral stance this month.
09.30 – GBP: Inflation Report Hearings